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XS EnergyArtistryNutriliteAmwayThis actually helps solve three of the four major issues, lack of product focus, reputation and compensation. Each product focused company could come out with an updated compensation plan with a focus on balance and the best reward strategy for the product line.

It is should be no secret that the fastest growing companies in Network Marketing over the last five years have been single product or narrow product line focused (such as weight loss). Narrowing the product focus strips away confusion and allows the unique products to shine.

The reputation will be helped by the renewed focus on products and less focus on the "2-5 year plan".

2. Reduce prices and get PV/BV back to a reasonable level ($3 to 1PV is not reasonable). The PV/BV situation overlaps with compensation but it is also needs to be mentioned with pricing. You can't drop the prices by 30% and then drop the PV/BV associates with the products by 50% and claim to now magically have competitive pricing.

Just get reasonable here. Mercedes has proven that you don't have to be the cheapest to be successful, but there is a line where the average consumer will say: "I don't care how good you say (the product) is, I'm not paying that much for (fill in the blank - Amway Product).

3. Update the compensation plan for the 21st century. Adding $60 million in new bonuses and then making them twice as hard to achieve is not updating the plan. Add some money for the newest growing associate. The IBOAI propaganda is suggesting that Quixtar/Amway now has the best compensation plan in the industry.

Uh, yeah. If I was driving a car from 1959 and claimed that it got better gas mileage than a 2008 hybrid, you would laugh at me. In the same manner, people that understand compensation plans within the industry are laughing at the IBOAI.

Lastly, this breakup would help address the core of the reputation problem by nullifying the power of the IBOAI, who haven't really represented the newest IBO in decades.

6 comments:

I love that your thinking! This is likely a wonderful solution to a long standing problem. But let's not be confused, Team will no longer associate with Quixtar/Amway. I hope they take your ideas and run with them, but again they will run without us. Team will not associate with an ethically and morally bankrupt company no matter what the financial reward. It's totally against all we teach and believe in. Now take your products, market them however you wish, and we hope your successful! But again, don't be naive enough to believe we will return. Bye bye-So long-Farewell-Adieu-Adios-See ya!

Lets see, to fix Q/A, you have to fix the balance between the IBOs and the corporation.

That was to be the board. That is why Rich & Jay started Amway, stayed as distributors with Nutrilite, and eventually purchased Nutrilite. That is why, when they started Amway, they create the "Board" first. That is why they set everyone up in Amway, in their original Nutrilite LOS, keeping their upline their upline.

They fixed it so the Corporation couldn't do anything to the plan or name or performance bonuses, etc. without the board/field approval.

All of the above has fallen flat on its face, at least by 2007.

You either fix the balance or you do what Rich and Jay did...wait a minute, you can't do that, the corporation made that against the rules/contract and they are enforcing it in the courts and also by arbitration.

The 1st generation knew what it meant to "be in the field". The 2nd generation does not, and has got greedy.

How do you fix greed and pride, humility. Can you do it outside the courts, of course.

I do think we need a better product that just Monavie. Now if we could buy out Nutrilite, we would have something...:)